More Nigerians are turning to bank loans to finance the purchase and construction of homes, with demand for housing-related credit recording a notable increase in the second quarter of 2026.

The development was disclosed by the Central Bank of Nigeria (CBN) in its Credit Conditions Survey Report for Q2 2026, which showed increased demand for loans across several segments of the economy, particularly housing and small-business financing.

According to the report, demand for credit to purchase houses rose to 9.6 index points during the quarter. Mortgage and re-mortgage lending to households also increased to 13.3 index points, indicating stronger demand for formal financing for housing-related needs.

The increase comes as households continue to face significant financial pressure from rising construction costs, property prices and other living expenses. For many Nigerians, access to bank financing can provide an alternative to paying the full cost of a property or construction project upfront.

The CBN report also recorded broader growth in secured lending. Overall demand for secured credit increased to 15.1 index points, while demand for corporate lending reached 15.2 index points.

Small businesses recorded one of the strongest increases in demand for credit, with lending rising to 26.4 index points. Lending to medium-sized private non-financial companies also increased to 25.5 index points, while credit to large private non-financial companies rose to 8.9 index points.

Consumer lending also strengthened during the period. The CBN reported that consumer loans to households increased to 11.2 index points, while household overdrafts and personal loans rose to 7.9 index points. Credit card lending, however, declined to -2.0 index points.

The improvement was not limited to demand. The report indicated that banks experienced lower default rates across secured and unsecured lending, while repayment performance also improved among small businesses and various categories of private companies.

The rise in housing credit demand could be significant for Nigeria’s housing market. Mortgage finance remains an important component of any effort to expand homeownership, particularly where property prices are too high for households to rely solely on personal savings.

However, stronger demand for housing loans does not necessarily mean that housing has become more affordable. Higher borrowing costs can still limit access to mortgages, while the underlying cost of land, construction materials and property development continues to influence the final price of homes.

The latest CBN figures therefore point to two developments happening at the same time. Nigerians are increasingly seeking formal credit to meet their housing needs, while the affordability challenge continues to make access to suitable housing difficult for many households.

For Nigeria’s housing sector, the long-term impact will depend not only on the availability of credit but also on whether financing becomes affordable enough for more households to qualify and whether increased lending translates into greater housing supply.

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The Federal Mortgage Bank of Nigeria (FMBN) has said its newly developed National Mortgage Registry will strengthen transparency, improve access to mortgage information, and restore confidence in Nigeria’s real estate market. The digital platform, which has been approved by the National Council on Housing, is designed to serve as a central repository for mortgage transaction records across the country.

Speaking at a stakeholders’ workshop on the validation of the National Housing Data Programme Report and the proposed National Housing and Built Environment Regulation Policy in Abuja, FMBN Managing Director and Chief Executive Officer, Shehu Usman Osidi, disclosed that the registry has reached a major milestone and is ready for deployment. He explained that stakeholder engagement, data collection, cleansing, and validation are currently underway before the system becomes fully operational.

According to Osidi, the registry will provide a reliable digital database of mortgage transactions, enabling financial institutions, regulators, and other stakeholders to verify mortgage information more efficiently. He said the initiative is expected to strengthen risk management, improve transparency, reduce fraud, and increase investor confidence in Nigeria’s housing finance sector.

The FMBN boss noted that the success of the mortgage registry will depend on collaboration among federal and state governments, land registries, financial institutions, mortgage banks, developers, professional bodies, and other industry stakeholders. He added that the project complements the National Housing Data Programme by providing credible information to support housing policy, investment decisions, and mortgage financing.

Osidi reiterated that reliable housing and mortgage data are essential to addressing Nigeria’s housing deficit and expanding access to affordable homeownership. He maintained that a transparent mortgage system will improve confidence among investors, lenders, developers, and prospective homeowners while supporting sustainable growth in the real estate sector.

Industry stakeholders described the National Mortgage Registry as a significant step towards modernising Nigeria’s housing finance ecosystem. They believe the platform will improve mortgage documentation, enhance property transaction security, strengthen consumer protection, and promote greater accountability across the real estate industry.

The post FMBN’s National Mortgage Registry Set to Boost Trust in Nigeria’s Real Estate Market appeared first on Housing TV Africa.